CEO Message

Reuters recently reported that 20 of the world's largest banks have paid more than $235 BILLION DOLLARS in fines and compensation over the past seven years related to issues around the credit crunch. If you are keeping score, First National Bank of Northern California has paid $0.00. Take local deposits & lend to local borrowers; safe and sound.

Take Steps to Avoid Foreclosure

Home Loan Financial Difficulties?
If you are unable to afford your mortgage payments and wish to avoid foreclosure, the options available to you
depend largely on the type of loan you have and the condition and value of your property. Those options may include
a refinance or new financing depending on your circumstances, the value and condition of your property, your
current income, whether to consider a sale of your property, and sometimes other factors. In some cases we'll
consider a loan "workout" or modification if it makes economic sense for both of us. You will need to contact
us at the number below to explore whether any of these options might be possible for you. Each loan must be
reviewed individually to determine the best option for you. If you decide to contact us to explore options to
foreclosure, we will need you to provide us with current financial information, including a statement of your
current monthly income and expenses, pay stubs, a list of balances owed to other creditors (e.g., credit cards),
balance and payment information on any other loans secured by your home, your most recent tax return, and
information regarding the condition of your property along with any other property information you may wish
to provide us that will help us determine the value of your property. To obtain further information or discuss
your loan with a mortgage loan specialist, please contact Randy Brugioni by calling 1-800-227-4962 or
1-650-875-4848.

Housing and Urban Development (HUD) can help you too.
HUD is a U.S. Government agency the increases home ownership and supports home buyers. HUD offers free or
low-cost counseling throughout the country. To find out where the nearest counseling agency is in your area,
please call 1-800-569-4287 or view the HUD website at: http://www.hud.gov.

A Safe and Solid Bank

WHO ARE WE?
First National Bank of Northern California opened in 1963 to serve the credit and deposit needs of Daly City.
The large nationwide banks present at that time, were doing what they continue to do today, taking local
deposits out of the local community and shifting that capital across the state and the country. Our business
model, however, hasn't changed since 1963, using the same philosophy that drove the bank in 1963; quality
banking products that offer real value to our customers, a safe and sound depository for their funds and
conservative lending to local businesses and consumers. First National Bank of Northern California has become
a vital resource for the communities we serve over the years, through donations, volunteer work and advocacy,
helping to create a higher quality of life in every community we serve. Today, the true test of a bank is how
well we can weather difficult economic times; and today's economic environment is unlike any we have seen in
our lifetime. That said, we continue to make loans; we're well capitalized and have plenty of liquidity.
We are profitable and continue to pay a quarterly dividend to our shareholders.

WHO WATCHES OVER US?
We are closely regulated by the Office of the Comptroller of the Currency, The Federal Reserve, the FDIC
and the Securities and Exchange Commission. Many of the financial services companies and some banks who
played fast and loose with the rules that contributed to the current economic mess are no longer in existence!
You can access our financial reports by going to our Investor Relations web page and clicking on the SEC
Information link. There you will find our financial reports along with other press releases.

WHY BANK WITH US?
There are many banks to choose from and technologies that allow for internet banking with banks that have
no branches. But what if your business needs a loan or advice? Where do you go? Do you want an impersonal
credit score formula to determine whether you are "worthy" for a loan? At First National Bank of Northern
California you can discuss your needs with a professional banker who takes a real interest in your success
and the success of your business. We have been doing that for 46 years and have remained independent, making
our credit decisions locally based upon your individual needs. If your preference is to bank via the internet
we can offer you safe and secure online banking; if you prefer traditional face to face banking, we have 13
convenient locations on the San Francisco peninsula and we welcome your presence. We know you have many
choices in banks today and we believe you should have choices in how you bank; either on line or in person.
Finally, First National Bank of Northern California's CEO was quoted in a recent San Francisco Chronicle
article concerning the banking "crisis" Tom McGraw, chief executive of First National Bank in Northern
California, said these smaller (banks) institutions are less affected by the national and global shocks
because they tend to take deposits from and loan money into the same communities. "They used to say,
'Too big to fail,' but now we're saying, 'Too small to fail,' " McGraw said. At First National Bank of
Northern California you'll find banking professionals, common sense and a focus on you and your needs,
not the needs of Wall St.